VAT in Turkey

1. What is the VAT in Turkey?

In Turkey, the VAT rate is established by the Turkish tax law. The VAT rate is calculated between 1% and 18%. It generally applies an 18% rate in Turkey. A reduced VAT rate of 8% applies to food or pharmaceutical products, while an even more reduce rate for VAT in Turkey of 1% is levied on newspapers, journals and some farm products. Some supplies are exempt from VAT in Turkey.

2. How can I get a VAT refund in Turkey?

VAT can be recovered in Turkey if a company representative submits an application form for refund. The claim has to be submitted with the Turkish tax authorities. It is usually required to provide original invoices and a copy of a recent tax certificate, but it may be necessary to have other documents too. The procedure for VAT refund in Turkey is usually completed in three to nine months. However, there are certain situations when a VAT refund can be received only after 12 months.

3. How can I register for VAT in Turkey?

Turkish companies that perform activities which are subject to VAT in Turkey must register for VAT with the Turkish tax authorities. Registration for VAT in Turkey must be preceded by a notification. This notification has to be submitted with the local tax office in the area where the company’s office is registered. If there is more than one office, registration for VAT should be made at the same tax office where the company registered for corporate income tax. The procedure for VAT registration in Turkey continues by providing a detailed form filled by the founders and some documents relevant for the company. These documents should include articles of association, company charter and power of attorney for the company’s representative, as well as information about the number of shareholders, names and addresses of directors and management board. The procedure is completed when a VAT number is issued for the company in Turkey.

4. How does intra-community VAT work in Turkey?

Turkey is not a member state of the European Union, therefore a special VAT regime is not available for what it should be called intra-community acquisitions.

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